REG - EnergyPathways PLC - Company Update

EnergypathwaysAnnouncement

06/08/2024 07:00

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RNS Number : 2669Z  EnergyPathways PLC  06 August 2024

 

 

6 August 2024

 

EnergyPathways plc

 

("EnergyPathways" or the "Company")

 

Company Update

 

New government's plan to retain the Decarbonisation Investment Allowance in
the Energy Profits Levy an encouraging signal for future investment in UK
energy transition projects

 

EnergyPathways (AIM: EPP), an integrated energy transition company delivering
low emission energy solutions which offer energy security to the UK, is
pleased to provide an update following the UK government's announcement last
week on changes to the Energy Profits Levy ("EPL").

 

Last week's speech to the House of Commons by the Chancellor Rachel Reeves
confirmed that the new UK government will follow through with its pledges to
increase and extend the EPL as well as remove supportive investment allowances
for new oil and gas fields.

 

This announcement also confirmed, however, that the EPL's Decarbonisation
Investment Allowance will be retained.

 

The Company views this as a positive indication of the new Labour government's
commitment to support investment in energy transition projects such as
EnergyPathways' MESH (Marram Energy Storage Hub) project. The Decarbonisation
Investment Allowance, set at 80%, incentivises decarbonisation development in
the UK's energy sector, including electrification, powering production
facilities with renewable energy, green hydrogen production and reducing
greenhouse gas emissions ("GHGs") by eliminating or avoiding flaring and
venting of GHGs.

 

EnergyPathways is developing its Marram Gas Field, located in the UK Irish
Sea, as a major gas and hydrogen storage facility, to be known as MESH. The
facility is being designed as a zero emission, fully electrified facility
powered by existing renewable offshore wind. Once operational, MESH will
produce the low emission natural gas contained within the Marram Gas Field to
displace the UK's high emission LNG imports, which are estimated to have a
carbon footprint intensity ten times greater than MESH supply. The gas
supplied from MESH may be further decarbonised with green hydrogen production
to harness the abundant renewable offshore wind power generation capacity of
the UK Irish Sea region.

 

MESH will transition to full-scale gas storage operations with an estimated
storage capacity of approximately 50 billion cubic feet of gas, equivalent to
that of the Rough Field, which is currently the UK's largest gas storage
asset. It is anticipated MESH will be able to offer high deliverability
storage services to the UK market for approximately 25 years.

 

EnergyPathways plans to further expand MESH by incorporating other underground
storage reservoirs of the region, associated infrastructure, and scaled-up
hydrogen production; in order to meet the evolving needs of the UK energy
market, by harnessing and storing the value of increasing wind curtailments,
that would otherwise be lost wind energy, in order to support a growing
hydrogen market.

 

With the UK having one of the lowest gas storage capacities in Europe, and
becoming increasingly dependent on gas imports, MESH will provide the UK with
much needed storage capacity to satisfy the UK's increasingly volatile
intermittent energy demand requirements and help moderate and lower the impact
of global commodity prices on UK household bills.

 

EnergyPathways' Directors believe that the MESH storage facility will be
pivotal to enhancing the UK's energy security, efficiency, and transition to
renewable energy source, being ideally located to harness the UK's excess wind
energy and capable of supplying secure dispatchable energy, as intermittent
energy supply and demand increase.

 

Ben Clube, CEO of EnergyPathways commented, "The new changes to the EPL are in
line with our expectations and are aligned with our strategy that positions
EnergyPathways to pursue energy storage opportunities such as the Marram
Energy Storage Hub, or MESH, which will be critical to the UK meeting its
energy security and net zero goals."

 

Q&A Recording

 

Ben Clube discusses EnergyPathways' growth strategy and how its unique
business model supports the UK government's rhetoric regarding energy
policy.  The interview can be accessed via the below link and is available on
the Company's website:

 

https://energypathways.uk/multimedia (https://energypathways.uk/multimedia)

 

 

Enquiries:

 

                     EnergyPathways                                    Tel: +44 (0)207 466 5000, c/o Buchanan (Financial PR)

Ben Clube / Ben Hodges

                                                 Email : info@energypathways.uk

                     Cairn Financial Advisers LLP (Nominated Adviser)  Tel: +44 (0)20 7213 0880
                     Jo Turner / Louise O'Driscoll / Sandy Jamieson
                     SP Angel Corporate Finance LLP (Broker)           Tel: +44 (0)20 3470 0470
                     Richard Hail / Adam Cowl
 Optiva Securities Limited (Joint Broker)                                                                Tel: +44 (0)20 3137 1903
 Christian Dennis / Daniel Ingram
 Global Investment Strategy UK Limited (Joint Broker)                                                    Tel: +44 (0)20 7048 9000
 Callum Hill / James Sheehan
                     Buchanan (Financial PR)                           Tel: +44 (0)207 466 5000
                     Ben Romney / Barry Archer
Email: energy@buchanan.uk.com (mailto:energy@buchanan.uk.com)

 

For further information on EnergyPathways visit www.energypathways.uk and
@energy_pathways on X (formerly Twitter).

 

Forward Looking Statements

This announcement contains forward-looking statements relating to expected or
anticipated future events and anticipated results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as general economic, market and business conditions, competition for qualified
staff, the regulatory process and actions, technical issues, new legislation,
uncertainties resulting from potential delays or changes in plans,
uncertainties resulting from working in a new political jurisdiction,
uncertainties regarding the results of exploration, uncertainties regarding
the timing and granting of prospecting rights, uncertainties regarding the
timing and granting of regulatory and other third party consents and
approvals, uncertainties regarding the Company's or any third party's ability
to execute and implement future plans, and the occurrence of unexpected
events.

 

Actual results achieved may vary from the information provided herein as a
result of numerous known and unknown risks and uncertainties and other
factors.

 

 

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